Charities, others examining currency carefully for fakes

Wednesday

Jul 2, 2014 at 12:01 AM

STOCKTON - As we get closer to the Fourth of July, word has spread quickly among Stockton's charity fireworks stands to be on high alert for counterfeit currency after hundreds of dollars in bogus bills were used for purchases during the weekend and on Monday.

Joe Goldeen

STOCKTON - As we get closer to the Fourth of July, word has spread quickly among Stockton's charity fireworks stands to be on high alert for counterfeit currency after hundreds of dollars in bogus bills were used for purchases during the weekend and on Monday.

One organization posted signs all over its booth: "This stand checks for counterfeit money!" Other stands have purchased $10 scanners equipped with an ultraviolet light that picks up security measures in legitimate bills.

One local expert on spotting counterfeit money said the pens that a lot of groups - and businesses - use to determine legitimacy don't work on the recent bills being passed in Stockton.

"Throw the felt markers in the garbage can. They're worthless. They read the paper, not the ink," said Robert Machado, 66, a retired Army master sergeant who spent time working for Homeland Security on the Mexican border near San Diego.

He gained his experience sifting through duffel bags full of cash, often legitimate currency leaving the country and fake U.S. dollars coming in.

Michael Savelli, chief administrative officer at the Bank of Stockton, confirmed there has been a surge of bogus cash circulating in the community in the past week.

"Counterfeit currency used to be a much broader problem than it is today. In the current environment, we only see it periodically, but just last week we did see a spike coming in from the fireworks stands," Savelli said.

"We circulated an alert to all of our branches to be on the lookout for all of these bills coming across the counter. At this point, it's mostly in the greater Stockton area," he said, noting his bank has mostly been seeing denominations of $20s and $50s.

Several stand operators reported accepting $100 bills as well, only to learn later from their banks they were counterfeit. Savelli said unfortunately the nonprofit charities are on the hook for the full face-value loss if they accept a bogus bill.

"The fundraising agencies do have a bit of means to help prevent this by being familiar with what the current bills in circulation look like," he said.

The Secret Service and the Federal Reserve have put together Web pages outlining what to look for in legitimate currency.

Machado said one of the easiest ways to check at the point of sale is to take your fingernail and pass it over the jacket lapel of the portrait on the bill. If it has distinct, embossed ridges, it's likely good. If not, question it.

Much of the current counterfeits have been created by repeatedly washing and bleaching legitimate $1s and $5s, then using the resulting blank paper to print higher values.

Newer, high value bills have a magnetic strip called a security thread in unique locations that spells out the denomination of the bill that is visible only when held up to light. Under ultraviolet light, it glows a different color.

The Secret Service, responsible for investigating counterfeit money crimes, was unable to make a spokesperson available Tuesday to comment on the incidents in Stockton - at least eight stands have been victimized - or to discuss if similar crimes are occurring elsewhere throughout the country. A search on Internet news sites turned up only one other similar instance - in nearby Rio Linda in Sacramento County.

Stockton's El Dorado Kiwanis Club, operating a fireworks stand in front of Smart Foods at East March and West lanes, was one of the nonprofit groups that learned from its bank Monday morning that it accepted $150 - one $100 bill and one $50 bill - in bogus currency over the weekend.

"It irritated the hell out of me. I carried out the fireworks for him," said one of the volunteers and past club president, Mike Wilson.

"It's not fair to the honest citizen if you deny him the ability to spend his money if it happens to be $50s and $100s. We have the scanner now and we feel more comfortable," he said, adding, "The money we lost was going for scholarships."

Contact reporter Joe Goldeen at (209) 546-8278 or jgoldeen@recordnet.com. Follow him at recordnet.com/goldeenblog and on Twitter @JoeGoldeen.